Google’s (NSDQ:GOOGL) Verily announced this week that, as part of a refined strategy, it eliminated 15% of its workforce.
Verily has more than 1,600 employees, so the layoff would be more than 200 workers, according to media sites.
On Jan. 11, CEO Stephen Gillett issued a letter to all Verily employees. Gillett took over the corner office this month after the company announced his promotion in September.
In the letter, titled “One Verily Forward,” Gillett laid out a refined strategy, prioritized portfolio and simplified operating model. That included a workforce reduction.
“I have promised you all transparency in what we’re doing, and this means we have eliminated approximately 15 percent of Verily roles due to discontinued programs, full control of Granular and Onduo, and redundancy in the new, centralized organization,” wrote Gillett. “Our most immediate priority is ensuring that these [Verily employees] are given the support they need to ease their transitions, and we will offer help in many ways over the coming weeks and months ranging from severance to coaching and outplacement services. I am truly grateful for their contributions.”
Details on the Verily restructuring effort
Gillett said the changes move Verily from multiple lines of business to once centralized organization with connected healthcare solutions.
Verily plans to center its strategy on “closing the gap between research and care.” It aims to become the data and evidence backbone for precision health. The company’s focus centers around applying AI and data science to improve outcomes. Part of this focus lands on growing the company’s Granular precision risk solution.
The company plans to prioritize products to accelerate evidence generation and deliver more precise interventions. It also changed its operating model to promote collaboration across its teams.
“We’ve made some hard but necessary choices to focus our resources where we can make a meaningful difference and that will help us build a business that impacts the healthcare ecosystem with interconnected products as we grow,” Gillett wrote.
Personnel moves represent part of the changes
Verily announced that, as part of its rejig, a number of executives have new roles.
The company plans to expand Amy Abernathy’s role to president of product development and chief medical officer. Scott Burke’s responsibilities expand as chief technology officer, with hardware engineering and device teams added to his existing scope.
Chief Commercial Officer Lisa Greenbaum will now oversee sales, marketing and corporate strategy. Verily expects for Cynthia Patton to continue as chief legal officer, Kerrie Paraino to continue as chief people officer, Preston Simons to carry on as chief information officer and Denny Weinberg to remain as CEO of Granular.
The company said its search for a chief financial officer continues. It also intends to hire a chief scientific officer.
Jordi Parramon, president of Verily’s devices business, plans to leave during this year. However, Parramon intends to stay on as an advisor to assist Verily through the transition period.
“This is a significant transformation for Verily, and one that builds on all of the work and contributions over the past seven years,” concluded Gillett. “I am confident that we are on the right path and this focused portfolio and streamlined structure will unlock our potential and advance meaningful growth.”